Showdown at Market Basket

Tuesday

Jul 22, 2014 at 7:40 PMJul 23, 2014 at 1:16 PM

By Chris Warrenchwarren@wickedlocal.com

A family feud causes implosion of chain's operationsAt the Market Basket supermarket in Burlington about noon Monday, the produce department shelves were mostly empty. One customer who walked into the section said, “What's the point of being here? There's nothing to buy. I'm leaving.” Some of the other aisles were sparsely stocked, too. For a store that's usually very crowded, due to its reputation of offering the best discounted prices compared to any other grocery store, there weren't many customers and only a few of the registers were open. The sudden change in the store's appearance and atmosphere are, of course, due to the latest installment in a family drama that has been going on for decades. The Demoulas-Market Basket chain was founded in 1954. Mike and George Demoulas eventually grew their father Arthur's Lowell grocery store business into a major regional supermarket empire. The current dispute has one side of the family, led by George's son, Arthur S. Demoulas, pitted against the other side of the family, with Arthur T. Demoulas, son of Mike, last month being deposed as CEO after his namesake cousin's side of the family took control of the board of directors. Thousands of Market Basket employees have rallied for Arthur T.'s return, and have risked their jobs in the process. Seven members of management were terminated last week.Many people may wonder how one person, known affectionately as “Artie T.,” has inspired such staunch loyalty. One of the Market Basket employees on duty in Burlington, who declined to be named, explained part of the reason. She said, “I've worked for Market Basket for 30 years. We don't get great pay, but we do get profit-sharing and bonuses and great health insurance — and that's all because of Artie T. He's also fought for the customers; he is the one who initiated the 4 percent cash-back program for our customers, despite opposition from Arthur S. and some of the other board members.” The employee said she believes that without Arthur T., the top management is going to raise prices, close stores and decrease employee benefits because they are unhappy with the profit margins. Another Market Basket employee, who was not on duty, stood outside the store to collect signatures from customers for a petition in support of the re-instatement of Arthur T. as CEO. She estimated she was collecting 50 signatures every half-hour. One customer, after signing the petition, said, “We're with you 100 percent. We need this store to afford to put food on our table. We have you in our thoughts and prayers and hope you [the employees] are successful.” The Burlington store has more than 600 employees. The Market Basket-Demoulas grocery chain has 71 stores located in Massachusetts, New Hampshire and Maine and employs more than 25,000 people.